(LO 5-5) 5-36. Methods of Estimating Costs: Simple Regression Simple regression results from the data of...
Simple regression results from the data of Adriana Corporation are as follows: Machine- Equation: Overhead - $206,469 (545.83 hours) Statistical data Correlation coefficient 2.962 2.925 Required: Estimate overhead if the company expects the plant to operate at a monthly average of 9.000 machine-hours next year Overhead costs
Adriana Corporation manufactures football equipment. Simple regression results from the data of Adriana Corporation are as follows: Overhead $43,410 ($88.30 x Labor-hours) Statistical data Correlation coefficient R2 607 368 Required: Estimate overhead if the company expects the plant to operate at a monthly average of 3,010 labor-hours next year. Overhead costs
Adriana Corporation manufactures football equipment. Simple regression results from the data of Adriana Corporation are as follows: Equation: Overhead = $43,599 + ($87.90 × Labor-hours) Statistical data Correlation coefficient .613 R2 .376 Required: Estimate overhead if the company expects the plant to operate at a monthly average of 3,190 labor-hours next year. Overhead Costs?
Adriana Corporation manufactures football equipment Simple regression results from the data of Adriana Corporation are as follows: Equation: Overhead = $43,407 + (589.20 * Labor- hours) Statistical data Correlation coefficient .608 .370 2 Required: Estimate overhead if the company expects the plant to operate at a monthly average of 3,030 labor-hours next year Overhead costs
Adriana Corporation manufactures football equipment. Multiple regression results from the data of Adriana Corporation are as follows: Equation: Overhead - $24,562 + ($31.70 x Labor-hours) + (541.40 x Machine-hours) Statistical data Correlation coefficient .960 .922 Required: Estimate overhead using the multiple regression results, assuming that the company expects the plant to operate at a monthly average of 9130 machine-hours and 3,010 labor-hours next year. Overhead costs
Exercise 5-36 (Algo) Methods of Estimating Costs: High-Low (LO 5-4) Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation between activity and overhead costs. Discussions with the plant supervisor suggest that overhead seems to vary with labor-hours, machine hours, or both. The following data were collected from last year's operations. Month sa in a Labor- Hours 725 720 685 740 775 765 740 725 700 795 675 710 Machine- Hours 1,354 1.418...
Exercise 5-31 Methods of Estimating Costs: Account Analysis (LO 5-3) Records at Hal's Accounting Services show the following costs for year 1: S Direct materials and supplies Employee costs Total Overhead 47,000 2,600,000 1,320,000 Production was 50,000 billable hours. Fixed overhead was $730,000. Assuming no change in billable hours in year 2, direct materials and supplies costs are expected to increase by 10 percent. Direct labor costs are expected to increase by 15 percent. Variable overhead per billable hour is...
Exercise 5-29 Methods of Estimating Costs: Engineering Estimates (LO 5-2) Twain Services offers leadership training for local companies. It employs three levels of seminar leaders, based on experience, education, and management level being targeted: guru, mentor, and helper. When Twain bids on requests for seminars, it estimates the costs using a set of standardized billing rates. It then adds an estimate for travel, supplies, and so on (referred to as out-of-pocket costs). Next it applies a percentage to the total...
Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow: Machine Hours 2,500 2,900 1,900 3,100 3,800 Month January February March April May June July August September October November December 3,300 Electricity Costs $ 18,400 $ 21,000 $ 13,500 $ 23,000 $ 28,250 $ 22,000 $ 24,750 $ 22,750 $ 15,500 $ 26,000 $ 31,000 $ 27,750...
Problem 5-53 High-Low Method, Scattergraph (LO 5-4) Academy Products manufactures a variety of custom components for use in aircraft navigation and communications systems. The controller has asked for your help in estimating fixed and variable overhead costs for Academy's Rio Puerco plant. The controller tells you that the best cost driver for estimating overhead is machine-hours. Monthly data on machine-hours and overhead costs for the last year have been collected and are shown below: Month Machine-Hours 710,000 980,000 805,000 745,000...